US Companies Slam China’s Innovation Policies

U.S. business groups on Tuesday criticized China’s government for recent proposals that could discriminate against U.S. software, computer and clean energy companies.

One proposal, first issued late last year, would encourage Chinese government agencies to purchase high-tech goods from companies that develop the technology in China. While not yet in place, the proposal is part of a raft of policies, known as “indigenous innovation,” that are intended to encourage more technological development within the country’s borders.

Jeremie Waterman, a senior director at the U.S. Chamber of Commerce, said the goal of the policies is to “provide distinct advantages to domestic (Chinese) companies and products or to force technology transfer if foreign players choose to participate.” Waterman testified before the U.S. International Trade Commission. The panel is studying the economic impact of China’s intellectual property and indigenous innovation practices.

China’s domestic procurement market is worth about $90 billion.

To learn more about China’s procurement policies, see also an informative blog post at the China Law & Policy blog.